HC Deb 24 January 2000 vol 343 cc112-3W
Mr. Matthew Taylor

To ask the Chancellor of the Exchequer if he will estimate the(a) full year and (b) first year revenues which would be raised by increasing the basic rate of tax by one penny in the pound. [106510]

Dawn Primarolo

The latest estimate for changing the basic rate of income tax was published by HM Treasury in table 4 of the "Tax Ready Reckoner and Tax Reliefs" in November 1999, a copy of which is held in the Library of the House.

Mr. Matthew Taylor

To ask the Chancellor of the Exchequer if he will estimate the cost of abolishing the 10 per cent. income tax band and extending the size of the personal tax allowance by the size of this band. [106511]

Dawn Primarolo

The cost of abolishing the starting rate of income tax and increasing the personal allowances by £1,520 in 2000–01 would be £4 billion in a full year. This estimate is based on the 1997–98 Survey of Personal incomes and consistent with the November 1999 Pre-Budget Report forecast.

Mr. Matthew Taylor

To ask the Chancellor of the Exchequer if he will estimate the cost of increasing the size of the basic rate income tax band by £2,000 per year, assuming no change in the size of the personal allowance or lower rate band. [106505]

Dawn Primarolo

The full-year cost of increasing the basic rate limit by £2,000 in 2000–01 is £0.9 billion. This estimate is based on the 1997–98 Survey of Personal incomes and consistent with the November 1999 Pre-Budget Report forecast.

Mr. Matthew Taylor

To ask the Chancellor of the Exchequer if he will estimate the(a) first year and (b) full year revenue yield from introducing a 50 per cent. income tax rate on taxable income of over £100,000 per annum; and how this yield would increase in each of the following two years. [106512]

Dawn Primarolo

The full-year yields from introducing a 50 per cent. income tax rate on taxable income over £100,000 per annum are £2.6 billion in 2000–01, £2.9 billion in 2001–02 and £3.1 billion in 2002–03. The first year yield on a National Accounts Basis is £1.7 billion. These estimates are based on the 1997–98 Survey of Personal incomes and consistent with the November 1999 Pre-Budget Report forecast.